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MERLOT II


    

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Material:

The Circulation of Currency in the Macro-economy (Closed System)

Contributed By:

David Chester

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Additional Info

In macroeconomics the use of language is important. Before making ascertive statements the subjects should be properly defined. In the diagram presented as this item there are 6 "entites" which represent the kinds of idealzed functional bodies or role-players who act in 19 different roles. Careful study of the diagram will allow the student to determine how these quantities are defined, each of them having an indepent macro-economic activity or function.

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This approach is used with algebraic symbols to represent the various entities and their various functions or flows.

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